Contract for difference (CFD) is an agreement between a trader and a broker. The trader agrees to buy an instrument from the broker that mirrors the movement of the underlying asset. The broker outlines margin requirements, which are lower than standard stock margin requirements, to purchase a CFD at its ask price. When desired, the trader can sell the CFD but only at its bid price. CFDs are available for stocks, indexes, commodities and other financial instruments in U.S. and international markets. A lower capital investment implies more leverage and magnifies the gains and losses of CFDs. To provide traders with tools to effectively manage positions, CFD brokers must: Have access to global markets Include CFDs in comprehensive portfolio reports Allow stop, limit and other order types Provide 24/7 customer service Have e-mail and mobile alerts options
via Forextra - Forex Trading Explained: Tips, Strategies + More For FX Currency Trading http://ift.tt/1U86OYx
via Forextra - Forex Trading Explained: Tips, Strategies + More For FX Currency Trading http://ift.tt/1U86OYx